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13 December, 05:30

Which one of the following is not an assumption for the law of one price? a. There is free competition b. There is no transportation cost c. There are no tariffs d. The skill level of workers is identical in both countries

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  1. 13 December, 05:45
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    d. The skill level of workers is identical in both countries.

    Explanation:

    The Law of One Price is an economic theory which explains that the price of identical or similar goods in different markets must be the same after taking the currency exchange into consideration. In law of one price, there is perfect competition and It ensures that buyers have the same purchasing power across global markets.
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